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Case study
Competitive Pricing Strategy for a Facility Management SaaS Leader
How a CAFM provider gained a competitive edge with a four-tiered pricing model
About the project
A leading provider of a Computer Aided Facility Management (CAFM) system, used to maintain and operate over 30,000 buildings across Europe, set out to strengthen its position against its main rival. The goal was to redesign packaging and pricing to highlight its unique value while aligning with market best practices and cross-selling opportunities with its sister company.
The challenge
- Needed to differentiate pricing and packaging from the primary competitor.
- Lacked detailed insight into regional pricing models, particularly in Scandinavia.
- Required a structure that supported upselling and aligned with the sister company's offerings.
- Risked price erosion if discount bundling was managed loosely.
The solution
Three strategic moves.
Action
Impact
Developed a four-tiered package structure (Start, Standard, Extended, Enterprise)
Standard tier built for head-to-head competition; Extended tier highlighted added-value options.
Aligned tiers with the sister company's offerings
Enabled easier cross-selling and a consistent customer experience.
Used square meters as the primary pricing metric
Combined with fixed user limits per tier to encourage upselling as usage grows.
Validation
The pricing model was refined through:
- Analysis of international IWMS pricing approaches and their pros and cons.
- Identification of a pricing imbalance at the 100-500,000 sq ft level, pointing to further alignment.
- Testing the model against new customer cases.
The results
Metric
Result
Competitive positioning
Stronger differentiation from the primary competitor with clear value tiers.
Upsell opportunities
Fixed user limits per tier encourage upgrades as customer usage grows.
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